OHL – Thoughts on the final restructuring agreement

 All, 

We see this news as positive for OHL. With an orderly debt restructuring and a knowledgeable new controlling shareholder in the Amodios, OHL seems to have avoided the minimal recovery of most other previous European construction debt workouts. This should allow management to continue its work of gradually addressing the legacy issues of the company while providing more visible and stable bank relationships to underpin the recovery of revenues. 

 While we do not have the full details of the term sheet, we understand that the discussions had previously moved to a haircut of around 20% of the bonds, which would be partly offset by equity warrants, still leaving the Amodios as the controlling shareholder. Sand Grove and a group of bondholders advised by PJT Partners have apparently proposed competing solutions.  

 This morning El Confidencial reported that OHL has reached a final agreement with its creditors and shareholders to restructure its debt. The CEO of OHL, advised by JP Morgan and Houlihan Lokey, will sign the term sheet over the next few days.  

 We are looking forward to exchanging ideas on OHL with you. 

Juliano 
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Juliano Torii
2 Stephen Street
London W1T 1AN
E: jtorii@sarria.co.uk
M: +44 794 73 56 163 (preferred)

T: +44 203 744 7055www.sarria.co.uk